Marsh & McLennan Companies Reports Second Quarter 2012 Results
Marsh & McLennan Companies Reports Second Quarter 2012 Results Revenue Growth Drives Strong Earnings Growth Across Each Operating Company
Second Quarter GAAP EPS From Continuing Operations Increases 20% to $.60
Adjusted EPS Increases 22% to $.61
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NEW YORK--(BUSINESS WIRE)--Aug. 7, 2012-- Marsh & McLennan Companies, Inc. (NYSE: MMC), a global professional services firm providing advice and solutions in risk, strategy and human capital, today reported financial results for the second quarter, ended June 30, 2012.
Brian Duperreault, President and CEO, said: “Our outstanding second quarter results successfully built on our strong first quarter. We produced revenue growth in each of our Operating Companies as well as excellent growth in operating income in both Risk and Insurance Services and Consulting, with meaningful margin improvement.
“Marsh continued its strong performance, including underlying revenue growth across all geographies and excellent new business development. Guy Carpenter produced impressive results, continuing its long-term trend of underlying revenue growth driven by international operations.
“Our Consulting segment produced underlying revenue growth, with a strong increase in profitability. Both Mercer and Oliver Wyman contributed to the segment's double-digit growth in earnings and improved margins.
"Our operating results in the second quarter demonstrate that we continue to track favorably against our long-term performance goals,” concluded Mr. Duperreault.
Consolidated revenue in the second quarter of 2012 was $3 billion, an increase of 3%, or 5% on an underlying basis from the second quarter of 2011. Underlying revenue measures the change in revenue using consistent currency exchange rates, excluding the impact of items such as acquisitions, dispositions and transfers among businesses. Operating income rose 11% to $518 million. Adjusted operating income, which excludes noteworthy items as presented in the attached supplemental schedules, rose 13% to $523 million in the second quarter.
Income from continuing operations in the second quarter of 2012 was $339 million, or $.60 per share, compared with $286 million, or $.50 per share, in the second quarter of 2011. Adjusted earnings per share in the quarter was $.61, an increase of 22% from $.50 in the second quarter of 2011. Net income was $329 million, compared with $282 million in the second quarter of 2011.
For the six months ended June 30, 2012, income from continuing operations was $693 million, or $1.23 per share, compared with $605 million, or $1.06 per share, in 2011. Adjusted earnings per share for the six months increased 17% to $1.24, compared with $1.06 last year.
Risk and Insurance Services
Risk and Insurance Services segment revenue in the second quarter of 2012 was $1.7 billion, an increase of 5%, or 6% on an underlying basis. Operating income increased 12% to